The Gujarat government on Thursday unveiled its first-ever Data Centre Policy 2026-29 with the objective of establishing the State as a premier destination for hyperscale data centres, cloud computing and artificial intelligence (AI)-driven digital infrastructure. The policy aims to attract investments of ₹6 lakh crore, creation of 7.5 GW of data centre capacity and generation of large-scale employment in the next three years.
Chief Minister Bhupendra Patel launched the Viksit Gujarat Data Centre Policy 2026-29 policy at Mahatma Mandir Convention Center in Gandhinagar. The CM said data is the driving force behind India’s digital economy. “The rapid growth in AI, cloud computing, digital payments, e-commerce and electronics manufacturing has resulted in a surge in demand for world class digital infrastructure,” he added.
He pointed out that the initiatives undertaken by the Centre concerning the advancement of cloud and AI infrastructure and the provision of tax incentives to global data center operators will further increase the investments.
The new policy provides an enticing package of incentives such as capital and interest subsidies, power tariff support, reimbursement of State GST, exemption from stamp duty and registration fee, and capital for captive desalination plants, which meet sector demands for a lot of water. The tasks also require that data centers source more than 51% of electricity used from renewable resources.
According to Chief Secretary M.K Das, the new policy will allow Gujarat to become competitive with major data center locations such as Maharashtra, Telangana, and Tamil Nadu. According to P. Bharati, Secretary of Science and Technology, India generates almost 20% of data produced globally but has only 3% of the world’s data capacity, which gives great opportunities for further development.
The government has already gotten proposals for projects with a total capacity of 10 GW, and Dholera is going to be the main place for investments. According to the Deputy Chief Minister Harsh Sanghavi, Dholera has the potential to become one of the biggest data centre cities in the world as it is well-equipped with the necessary infrastructure projects, including an international airport and a semi-high speed rail link.
The state will also provide assistance for investment by land identification, stakeholder consultations and assigned nodal officers for quicker project approvals.
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